I am about to make my first offer on a Fannie Mae Home Path home. It's going to be a live-in-flip. It's listed for 70k. ARV is 110-115k. My MPP is 60k, but I really want to get it for ~50k. How can I get the best price? Should I start by offering 40k. How long does this process usually take and what can I expect?
For all practical purposes, I am a cash buyer. I should have cash in my account for proof of funds by Friday and the "no investor" period ends after Tuesday.
Each market is different so I can only give you my experience.
We have been putting in offers on HomePath properties in Florida and so far we've had 1 accepted. We ended up backing out of the deal but in our experience they are not accepting offers below 3-5% of list price. Sometimes they don't even counter or acknowledge your offer if it's in that range. One property was listed at $52,900, we offered $49k and they countered back at $50k, and it was an all-cash offer.
Especially if it's a newer property and just coming off of First Look they're not going to entertain low ball offers.
Again, each market is different but I'd be surprised if they let it go for $60k right off the bat.
Keep us posted though because if they're accepting offers that low then we may need to re-evaluate that market!
Best of luck!
If its a brand new listing I would be surprised if you get the bank to take less than full listing price right now, since the market is so strong in most of the country......that and inventory is so low. So if there is the risk of other offers coming in I would suggest offering as much as you feel you can pay so you get the deal (but that doesn't mean over-pay for it).
They certainly will not come down to $60k now, especially since it's still in the OO period. Not going to happen.
Thanks for all the replies! I guess I shouldn't get my hopes up on this house. I have to try anyways. I'll let you all know how it goes.
@Wayne Brooks Every market is different. You're right, it probably won't happen but Wichita and West Palm Beach are slightly different.
@Chad Skiles as @Tucker Merrihew said, put in the highest offer you are comfortable paying and see what happens. Don't be discouraged by people who tell you it's NOT going to happen. That will always be the answer if you don't try. If this one doesn't work out, keep hunting, the right one will come along.
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